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The GSE Public-Private Hybrid Model Flunks Again: This Time It’s the Federal Home Loan Bank System (Part 1)

The Stoop (NYU Furman Center)

The leadership of the FHLBs, along with various beneficiaries of their subsidies, has also begun to aggressively lobby and advocate against virtually any proposed change that it views as detrimental to its bottom line. In 2003, Franklin Raines, the highly visible CEO of Fannie Mae at the time, received compensation of $17.1

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The GSE Public-Private Hybrid Model Flunks Again: This Time It’s the Federal Home Loan Bank System (Part 2)

The Stoop (NYU Furman Center)

It describes how the GSE design defect had very publicly manifested itself in these institutions prior to their being taken over by the government via conservatorship in 2008. Like F&F, FHLB leadership teams are motivated to maximize profits. It did so, for example, in 2004 to cover the budget year 2003, when its estimate was $3.2

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